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Investing.com - Mizuho (NYSE:MFG) has reiterated its Outperform rating on Chord Energy Corp (NASDAQ:CHRD) with a price target of $150.00, according to a research note published Wednesday. This target aligns with InvestingPro’s analysis, which indicates the stock is currently undervalued. The company, with a market capitalization of $6.25 billion, trades at an attractive P/E ratio of 7.01 and offers a substantial dividend yield of 6.16%.
The investment firm noted that Chord Energy now appears "firmly inclined" to maintain its original plan of adding a second frac crew in the second half of 2025 and delivering a maintenance-plus program in 2026, despite previously indicating it might reduce activity when oil prices were below $60 per barrel. InvestingPro data shows the company maintains strong financial health with robust cash flows to support its operational plans.
Mizuho highlighted that this stance aligns with messaging from a meeting with Chord Energy’s CEO in late May, which the firm believes has improved sentiment and relative performance for the stock in recent weeks.
The research note mentioned that investors should watch for updates on Chord’s four-mile laterals, with the company expected to have approximately six months of data from its first such well and plans to bring two more online in the third quarter of 2025.
Mizuho also emphasized that Chord Energy’s relative valuation "underappreciates recent execution, below-average financial leverage, and above-average cash returns," while noting the firm expects Chord to return approximately 100% of its second-quarter free cash flow to shareholders.
In other recent news, Chord Energy Corp reported its first-quarter 2025 earnings, revealing an earnings per share (EPS) of $4.04, surpassing analyst expectations of $3.38. However, the company fell short on revenue, generating $1.1 billion against a forecast of $1.16 billion. UBS maintained its Buy rating for Chord Energy with a $113.00 price target, forecasting second-quarter adjusted EBITDA of $527 million, slightly below the Street consensus of $537 million. The firm’s production forecast of approximately 273,000 barrels of oil equivalent per day aligns with Street estimates and falls within Chord Energy’s guidance range. Piper Sandler lowered its price target on Chord Energy to $159.00 from $161.00, citing adjustments related to well timing, while maintaining an Overweight rating. The company reduced its full-year 2025 capital expenditure guidance to $1.37 billion from $1.40 billion, reflecting lower capital expenditure in the first quarter. Chord Energy’s strategic focus on longer laterals, such as three-mile laterals, is expected to maintain stable production and provide a significant internal rate of return. These developments highlight the company’s ongoing efforts to optimize production and manage costs in a challenging oil price environment.
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